Desert Ridge - Buy new or resale?

Asked by AZ Buyer, Phoenix, AZ Sun Jul 6, 2008

We have been renting for awhile and really want to get back into our own house. We like the Desert Ridge area and want to know if we should consider one of the new developments in Desert Ridge or stick with resale. The new developments are nice (D.R. Horton) but I have concerns being one of the first buyers in the subdivision plus it appears that the foreclosures in Aviano are starting to ramp up. Does anybody have any recommendations for the area?

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14
Roberto Ribas, , Scottsdale, AZ
Mon Jul 14, 2008
Desert Ridge is seeing MASSIVE price drops. Do yourself a huge favor, and rent for 6 to 12 months more. The new home builders are not dropping prices enough yet to match the market reality, and neither are the existing homeowners. However, foreclosures, which were unheard of in this relatively upscale market, are now climbing swiftly. The banks are beggining the process of price discovery.

Do you want to buy, only to see the price drop 100K in the next 12 months?

See my webblog for more info. ignore agents saying 'its a great time to buy' they are not mathematically inclined enough to understand our market.

Professor Ribas
2 votes
Stew Keene, Agent, Scottsdale, AZ
Wed May 12, 2010
Wow, interesting answers all. My opinion of the Desert Ridge area is simple. Know where to buy, what you are buying and you'll probably be in pretty good shape.

Here's what I see. A home in great shape around 2500 or so sq ft in that area close to DR mall under 300k is a great deal if it's in nice shape. I sold a 2800 sq ft home last year that has actually gained in appraisal value as it was recently refinanced up about 40k from the purchase price because we bought "right" and chose wisely.

I don't see price declines and in fact I see more stabilization because of the demand.

Will there be more foreclosures, sure. Will short sales come to the surface, probably so.

So there will continue to be opportunity, but you have to know what real value is and not simply chase the "market fever" either way like chicken little "the sky is falling" kind of mentality.

You can find present market pricing for homes very affordable if you look more north of Desert Ridge up Tatum as well and out towards Cave Creek.

There is also another new construction site Pulte has just opened up in Cave Creek called "Lone Mountain" and there are some pretty good values there, but short sales are still the main competition now being the dominant selling platform for homes (there are more short sale listing now than REO's)

The last thing to determine if Desert Ridge is right for you is your affordability range and the size of home you require. Be sure to get a pre-approval with your preferred lender in advance of your property purchase as this will help determine if the area is affordable or if you need to start looking in other areas to get what you need within your range.

There is also the possibility of purchasing a lot or land and building a new construction home with a builder as some are now building in the 85.00 per sq foot range.

What every you do, you need to work with a professional and informed Realtor who can look beyond what the stats say because they sell and buy in Desert Ridge.

Best Of Luck To You!

Stew Keene - Home Smart Realty
North Phoenix & Scottsdale Area Specialist
Accredited Buyers representative
Web Reference:  http://www.stewkeene.com
1 vote
Laura Myers…, Agent, Scottsdale, AZ
Wed Feb 4, 2009
AZ Buyer
If you still are looking feel free to stay on top of resale at http://www.DesertRidgeLifestyle.com Free MLS search set up for buyers and sellers to watch their neighborhood sales and search for homes.
Since your question was posted much has changed.
I have a new listings posted on Trulia at 4702 E Mossman available for sale I'd love to show you if you are still looking. Great 3 bedroom and Den with pool.

Buying new is best at final Spec stage. I find the Pulte and DR Horton are holding to strong to their pricing but note that all things are negotiable. Builder sales reps represent the builder at all times so bring your own representation. Many bank owned and short sale property is available in Desert Ridge at prices soo low!

All my best
Laura Myers
Keller Williams Arizona Realty
480-600-6213
1 vote
Angie_gonzo@…, Home Buyer, Scottsdale, AZ
Thu Jun 24, 2010
We entered a contract for a new "spec" home in a Desert Ridge community in March 2010 about 6 weeks before its completion and moved in end of April 2010. It was professionally designed and included every upgrade except wood floors-- it has tumbled travertine showers with glass doors, a spiral staircase, granite, 18" tile floors, show piece soaking tub, HUGE corner lot with no neighbors behind us, etc. for $485k in April 2010. Our neighbor across the street just bought the EXACT same model (on a smaller, not corner lot) for $522k and the house next to us, a slightly larger model, just closed for $541k. So as for houses "plummeting" in Desert Ridge, I don't know where. Maybe the houses whose buyer's needed a tax credit to afford the home are plummeting, but I'm not seeing it in our community. People are spending over a half million on homes and then adding $50-$100k worth of pools, turf, outdoor fireplaces, BBQ's, etc. with cash; the builder doesn't let you include pools in the purchase price of the home so you aren't "upside down" on Day 1. We just broke ground on our pool this week and feel fine that we won't be upside down. So either I'm just a more positive person not wanting to jump on the "doom and gloom" train or the answer to your question is-- it depends which community and how good of a deal you can negotiate on a new home.

If you're buying a house for lifestyle, don't worry if the value moves up and down every month-- just buy what you like and what suits you. We own two other houses in Scottsdale and Tempe that we are underwater on and it's not the end of the world.... Houses are meant to lived in and create memories -- People who are trying to time the market perfectly to maximize their investment return should switch to day-trading in the stock market!! :)

P.S. We also looked in Aviano and at the time we were looking (March/April 2010) there were almost no houses left in Aviano that weren't under contract-- our realtor felt bad their nothing left to show us! We satyed away from short sales though, as we learned our lesson after trying to purchase a home in DC Ranch and another house in Scottsdale where we put in the highest offer and still didn't get it. That's why going with a new house was a much better option-- we could control the outcome. But if you have patience and no timelines, a short-sale resale may be for you! Good luck!
0 votes
Scott Troyan…, Agent, Scottsdale, AZ
Sun May 9, 2010
Definately stick with resale. Be patient, and pick your price per square foot tolerance level and when you find the right property, on the right street pull the trigger. Check out http://www.DesertRidgeHomeSales.com. Good Luck!
0 votes
Roberto Ribas, , Scottsdale, AZ
Sun Mar 1, 2009
I wonder how all those 2006, 2007 buyers who 'felt pickled pink" to get there desert ridge homes feel now? the market is in full retreat there is mulitple years of inventory on the mls, and foreclosures are controlling the pricing.

enjoy 2009!
0 votes
Marina Kocian, , Scottsdale, AZ
Fri Jul 11, 2008
Desert Ridge,
I friend of mine just moved in to their new home, they are loving it, great area. Either way you'll find good deals, happy house hounting,
Web Reference:  http://ownyourhomeaz.com
0 votes
David Court, , Cave Creek, AZ
Mon Jul 7, 2008
I would definitely advise you to consider both options. The new communities in the area of your search are by reputable builders and you may well be able to get a good deal, particularly on a "spec." home.

Foreclosures are a problem in many sub divisions but the underlying market in the Desert Ridge area is sound. Aviano has a particular problem, I suspect, due to the time when a lot of the homes there were originally sold (that is, at the top of the market).

I would be delighted to have the opportunity to assist you. Please visit my website for contact details and search options. I can also set up automatic searches for you using the AZ multiple listing service.

Good luck!


David
Web Reference:  http://www.homedreamsaz.com
0 votes
Richard Dobb…, Agent, Scottsdale, AZ
Mon Jul 7, 2008
Hello, AZ Buyer. The important thing is that you have made a decision to buy. And in this market this is a great time to be buying. Desert Ridge is an excellent location and I don't think you could go wrong either way, with new or resale. You have the new DR Horton community available to you and the new Pulte/Del Webb Fireside community. Two great choices. I own two rental properties in the area and I am going to hold on to them for awhile because I believe in the long term potential of the area. Good luck in your search. If you need any help don't hesitate to call or email.

Rick Dobbles
Realty Executives
0 votes
Paul Welden, Agent, Scottsdale, AZ
Mon Jul 7, 2008
I would consider all options when buying now. Look at both new & resale & get the best deal that matches your needs.

Most of my buyers concerns about being one of the 1st buyers in a new neighborhood revolve around future construction noise for the next few years as well the builder financials. You may also have to endure these situations if you buy a resale that is close to a new build neighborhood.

Point being...don't automatically exclude an option until you have investigated thoroughly & have enough information to make good real estate decisions.

---
Paul Welden
REALTOR
HomeSmart Real Estate
Web Reference:  http://CheapPhoenixHomes.com
0 votes
Lucinda Tkach, , Phoenix, AZ
Mon Jul 7, 2008
I had a buyer's recently purchase in D.R Horton subdivision and they are very happy with their purchase. The savings was awesome with the current market. However their are some great values with resale too. What my buyers's liked was the new build warranty and not having to renovate.

I have direct contacts with their community if you would like some guidance feel free to contact me!

Lucinda
0 votes
Carlos Ramir…, Agent, Mesa, AZ
Sun Jul 6, 2008
Your concerns are very valid. Unfortunately it is very hard to predict on this times if a new home builder will go under, hence affecting property values. Although as sales pick up, chances of a builder going under will be reduced. If you are attracted toward new develpements try to find one that is on its final stages and have a solid reputation - if they are on their final stages chances are that they wll finish it.

Property values in areas with high foreclosures rate will definitely be affected. But as a buyer you should look at that as an advantage and not a disadvantage. It is your opportunity to buy cheap and wait until things level up - the area and the property that used to go cheap because of the foreclosure will increase in value as it levels with the rest of the area.
Web Reference:  http://SmartAZRealty.com
0 votes
Todd Lee, Agent, Phoenix, AZ
Sun Jul 6, 2008
Depending upon the builder, new is not a bad option. Tonje makes a good point about builders going under but the risk is mainly with the smaller developers. You will still find lots of foreclosures going forward for the next few years thanks to the former creative financing that was offered.

In either case, there are plenty of options to choose from. You just need to find out which best fits your wants and abilities. I'd be happy to help if you need it!
Web Reference:  http://www.TLeeRealty.com
0 votes
Tonje Kearney, Agent, Scottsdale, AZ
Sun Jul 6, 2008
I would definitely stay away from new home developments right now. With the risk of builders going under, there is no need to exposure yourself to that kind of risk right now. There are plenty of resale opportunities in the Desert Ridge area right now, you should be able to find exactly what you are looking for. Good luck in your home purchase!
Web Reference:  http://www.TeamKearney.com
0 votes
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